Stock / Symbol: Zoom / ZM
Strategy: Bull Put Spread
Trade entry date / price: 05 Oct 2020 / $481
Price at this post: $498
Update: Zoom just needs to finish today over $450 for us to realize this trade's full profit potential. At ZM's current price, this is pretty much assured. Just in case, however, we're going to see if we can buy back the short leg of the position. Nice thing about my broker (Think or Swim platform with TDAmeritrade) is that there's $0 commission for buying back short options at/under $0.05.
Trade Exit Details:
BTC 1 ZM 09Oct20 450 put
For a max debit of $0.01 per contract (day order, limit order). The mid is currently at a debit of $0.075. With no corporate events planned today, you should be completely safe if this doesn't fill... as long as ZM finishes that day over $450.00
Analysis:
Max Risk: $200
Max Reward: $50 or 25% with ZM at/over $450 on Oct 9th
Profit Range: ZM over $449.65 on Oct 9th
Commission (round trip): $1.30
downside stop @ $455
Anticipated Profit / Loss either upon fill or by market close today: $49 - $50 or 25% (pre commission)
